From technical perspective there is a triangular contraction formation (which extended from July to Mid-October) seen on this 75 minutes Nifty chart. It was followed by a strong breakout in the mid-October giving a vertical rise scenario.
➡As it is pulling back, there is a Support zone near 25850 (Volume Point of Control), which if holds might take the Index to new highs or at least to its previous highs.
Even if this support holds, I expect a slow grinding action with wide range swings on both the sides near previous highs.
➡A second scenario could be that 25850 doesn't holds. In this case we can expect a test of next potential support zone near 25330.
This was also the breakout zone of the triangle contraction, so the sellers might take it there for a retest before the price pushes back up.
What do you think at this point?
💬Will it hold the current support, or will it move to the next support?
📣Not a buy-sell recommendation, for educational purpose only.
Boost & comment for more such ideas in future.
➡As it is pulling back, there is a Support zone near 25850 (Volume Point of Control), which if holds might take the Index to new highs or at least to its previous highs.
Even if this support holds, I expect a slow grinding action with wide range swings on both the sides near previous highs.
➡A second scenario could be that 25850 doesn't holds. In this case we can expect a test of next potential support zone near 25330.
This was also the breakout zone of the triangle contraction, so the sellers might take it there for a retest before the price pushes back up.
What do you think at this point?
💬Will it hold the current support, or will it move to the next support?
📣Not a buy-sell recommendation, for educational purpose only.
Boost & comment for more such ideas in future.
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JJ Singh
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Moderator, TradingView
🚀Join t.me/jjsingh_2020 ,
A Free Education channel
🚀Tweet at twitter.com/JaySingh_2020
Trader/Investor
Moderator, TradingView
🚀Join t.me/jjsingh_2020 ,
A Free Education channel
🚀Tweet at twitter.com/JaySingh_2020
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
JJ Singh
Trader/Investor
Moderator, TradingView
🚀Join t.me/jjsingh_2020 ,
A Free Education channel
🚀Tweet at twitter.com/JaySingh_2020
Trader/Investor
Moderator, TradingView
🚀Join t.me/jjsingh_2020 ,
A Free Education channel
🚀Tweet at twitter.com/JaySingh_2020
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.